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U.S. Stock Futures Rise as Bonds Rally – The Wall Street Journal

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https://www.wsj.com/articles/global-stock-markets-dow-update-03-01-2021-11614588580

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Stock futures climbed Monday as investors awaited a slate of Federal Reserve speakers and data on the manufacturing sector.

Futures tied to the S&P 500 rose about 1% and contracts for the Nasdaq-100 advanced 1.1% after a bruising week for technology stocks. The broad advance came as the yield on 10-year Treasury notes, the benchmark borrowing cost in global debt markets, slipped to 1.455% from 1.459% Friday. Yields fall when bond prices rise.

Stocks, and particularly shares of tech companies, have been buffeted by volatile moves in government-bond markets in recent trading sessions. A lurch higher in yields last week called into question the prospect of a long period of low interest rates, which had underpinned the past year’s booming rally in stocks.

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Monday’s decline in yields helped revive investors’ demand for stocks. But money managers remained wary of further spikes that could spark fresh volatility in share prices. Investors will later parse a speech by Fed governor Lael Brainard for clues about whether the central bank will push back against higher yields.

“This week is key,” said Andrea Carzana, a fund manager for London-based Columbia Threadneedle Investments. If the Fed doesn’t seek to tamp down expectations of higher inflation, yields could continue to rise, rattling the stock market, according to Mr. Carzana.

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